Dubai Mainland, a Prime Region to Grow Your Business
In recent years, Mainland company formation in Dubai has undergone significant regulatory reforms, making it easier than ever for investors and entrepreneurs to get their businesses up and running. In addition to a business-friendly environment and relaxed tax responsibilities, business formation in this jurisdiction offers several advantages for entrepreneurs looking to establish a presence in the UAE’s thriving business landscape.
If you’ve been considering business formation in Dubai and would like to know more about the process of starting your company, stick with us! We’ll explore this in greater detail to give you all the necessary knowledge to maximize your business potential.
Mainland Company Formation in Dubai Without a Local Sponsor
Traditionally, forming a mainland company in Dubai required the assistance of a local sponsor. This UAE national would hold a 51% share in the company, while the foreign investor owned the remaining 49%. However, in recent years, there have been significant changes to this requirement, offering foreign investors more autonomy and flexibility.
Thanks to the Dubai government’s efforts to encourage foreign direct investment and boost economic diversification, it is now possible to establish a mainland company in Dubai without needing a local sponsor.
The ability to establish a mainland company in Dubai without a local sponsor has removed a significant barrier for many international investors, making it advantageous for those looking to retain full control of their businesses and operations while taking advantage of the many benefits of operating in the UAE can offer.
This innovative approach to business formation in Dubai has also streamlined the setup process, making it more efficient and investor-friendly. Foreign investors can now easily navigate the company formation process, backed by supportive government policies and initiatives.
Professional Licensing is a Requirement for 100% Company Stake
To take advantage of 100% company ownership in Dubai’s mainland, foreign investors need to obtain a professional license for their chosen business activity. This license allows entrepreneurs to fully own and operate their companies without the need for a local sponsor. The professional license is available for many service-oriented businesses, such as consulting firms, IT companies, advertising agencies, and more.
The introduction of the professional license option has simplified the company formation process in Dubai’s mainland for foreign investors. Entrepreneurs no longer have to rely on local sponsors, which can be an added expense and may lead to potential conflicts. Instead, they can focus on their business goals and strategies, knowing they have complete control over their operations.
The Benefits of Securing a Professional License in Dubai
Now that we’ve covered why you would choose to obtain a professional license in the UAE, let’s delve into the key benefits it offers:
100 Percent Foreign Ownership
One of the most significant benefits of securing a professional license in Dubai is the ability to enjoy 100 percent foreign company ownership. Unlike traditional mainland company setups that require a local sponsor, a professional license empowers you to retain complete control over your business operations, providing the confidence and autonomy to execute your vision.
Secure Commercial Deals with DED
Companies holding a professional license in Dubai can engage in commercial transactions with the Dubai Department of Economic Development (DED). This enables you to bid for government contracts and participate in lucrative projects, unlocking a myriad of opportunities within the thriving UAE market.
Easy Visa and Labor Quota Applications
With a professional license, you can apply for labor quotas and visas for your employees. This streamlined process ensures your workforce requirements are efficiently met, allowing you to build a skilled and reliable team to support your business endeavors.
Variety of Professional Services
The professional license offers a diverse range of business activities and service-oriented options. Whether you’re venturing into consulting, advertising, IT services, or legal practices, Dubai’s flexible regulations cater to many professional services.
Cost-Effective License Renewal
License renewal for professional businesses in Dubai is cost-effective and hassle-free. This allows you to focus on your core business operations without incurring significant expenses during renewal.
No Corporate or Income Tax
Dubai’s favorable tax regime is undoubtedly a major draw for investors. Companies with a professional license enjoy the benefit of zero corporate and income tax, making it an attractive location for businesses looking to maximize profits and minimize tax liabilities.
Engage with Many Clients and Markets
Dubai’s strategic location serves as a gateway to various international markets, positioning your business for global success. With Dubai’s world-class infrastructure, connectivity, and logistics capabilities, you can easily engage with clients from different regions and expand your market reach.
Interested in Operating in Mainland Dubai? Let MSZ Show You the Way!
Whether you’re opening a medical practice or part of the ever-growing tech revolution, operating in Dubai’s Mainland offers plenty of advantages for the right entrepreneur. And by seeking the help of knowledgeable business consultants like MSZ Consultancy, you can minimize the stress of day-to-day operations and focus on what truly matters- your business.
It doesn’t matter whether you’re a single investor or part of a larger commercial group; our skilled consultants carry the knowledge needed to operate seamlessly in a foreign market.
So, if you’re ready to build a bridge to your company’s success, give MSZ Consultancy a call at +971 52 544 1248. From business formation in Dubai to obtaining residency visas, we can make owning a business lucrative and rewarding. Let our team of experts help you cut through the red tape!